OECD Backs Spain's Deficit Cuts

By

Jonathan House

Updated Dec. 20, 2010 6:33 a.m. ET

MADRID—The Organization for Economic Cooperation and Development Monday said Spain's budget deficit reduction plan "seems appropriate," but urged the country to push forward with changes to its banking sector, labor laws and to rules on regional-government expenditure.

In its annual report on the Spanish economy, the OECD forecast gross domestic product will fall 0.2% in 2010, rise 0.9% in 2011 and 1.8% in 2012. It forecast...